A construction company spends $2.5 million to purchase a new crane. The crane will have a capital cost allowance (CCA) rate of 40%. If the opportunity cost of capital is 11%, and the company's marginal tax rate is 30%, what is the present value of the CCA tax shield? 

Answer rating: 100% (QA)

To calculate the present value of the CCA tax shield we need to determine the tax shield generated b... View the full answer